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Our NSW body corporate changed managing companies in September 2020. We had our 2021 AGM in July where the new managers asked us to sign a new agreement for more money, starting from the date of the AGM.
I pointed out our current agreement runs until September 2021, but the Director/licensee in charge has told us that “the previous agreement becomes voided after each AGM, it is an industry written contract.”
We are not a new strata.
IS she correct?
hope you can help !
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As always, you need to read the contract that was signed.
The term will be clearly in the contract.
Either party can terminate a contract provided certain conditions are met. In the case of the strata manager , and in the case of a multi year contract, they are required to give written notice a specified amount of time before the date they want to terminate.Also the standard SCA contract has a standard clause that provides for the remuneration to increase yearly . The increase is specified but the standard contract is 5%.
This thing the agent is saying about the contract being voided at every AGM sounds like BS to me. Never heard of that before. If it’s true, I’d just wait until the next AGM and not offer them a new one.
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